HomeMy WebLinkAbout2008-09-15
AUDIT COMMITTEE MINUTES
SEPTEMBER 15, 2008
CITY OF KITCHENER
The Audit Committee met this date commencing at 5:06 p.m.
Present:
Mayor C. Zehr - Chair and Councillors J. Smola, J, Gazzola, K. Galloway, G.
Lorentz and C. Weylie
Staff :
C. Ladd, Chief Administrative Officer
P. Houston, General Manager, Community Services
D. Chapman, Director of Budgets & Financial Services
R. Browning, General Manager, Development & Technical Services
C. Tasker, Performance Measurement & Internal Auditor
L. Alonzo, Performance Measurement
R. Gosse, Committee Administrator
1. 2008 WORK PLAN UPDATE
Ms. C. Tasker provided an update on the 2008 Work plan advising that the following internal
audits have been completed:
· Facilities Management Review
· Inventory Controls Review
· Breithaupt Centre Administration Review
· Engineering Roles and Responsibilities
· Delta Project Risk Assessment
· CMF Project Risk Assessment
· King Street Risk Assessment
Ms. Tasker further advised that in regard to Performance Measurements, audit staff completed
or assisted with the 2007 Status report, Compass Kitchener Report Card, and the Municipal
Performance Measurement Program Reporting. She added that two other reviews requested
by the Audit Committee, Human Resources and Special Events, have been started and will be
reported on later this year.
In answer to a question raised by the Committee, Ms. Tasker advised that the stakeholders
consulted for the Special Events review included Divisional staff, other City staff,
representative of the youth community, and key Downtown stakeholders.
2. EVOLUTION OF PERFORMANCE AND INTERNAL AUDITOR ROLE
Ms. Tasker advised that the role of Performance Measurement and Internal Auditor has been
focused primarily on the development of a Division level performance measurement program
along with some internal audits and reviews. The focus of these tasks were on improving the
effectiveness of the organization rather than on risk identification or risk management. In
2007, a consultant was hired to develop a framework for Enterprise Risk Management
resulting in a program that would capture key Corporate risks, rating scale to assess the level
of impact and probability of each risk, and a process for managing the risks through mitigation
plans on monitoring. Since that time the internal audit team has place more focus on the
importance of risk management and the demand for internal reviews. Ms. Tasker advised that
in April 2008, a consultant was hired to perform the project risk assessment of the CMF and
section staff participated in the process creating their own risk register in tandem with the
consultants. The resulting risk registers showed that staff were capable of doing this work in
the future saving the Corporation roughly $100,000. per project. Ms. Tasker explained that in
moving forward with the Enterprise Risk Management approach there will be a creation of a
risk management policy, a Corporate risk register linked to business plans, continued risk
assessment for large projects and continued risk updates to the Chief Administrative Officer
and General Managers.
3. COMPLIANCE REPORTING
Ms. Tasker advised that at the March Audit Committee meeting, it was requested that staff
undertake compliance reporting similar to that done annually at Wilfred Laurier University. Ms.
Tasker explained that staff reviewed the WLU compliance report, interviewed the WLU Auditor,
and undertook two months of extensive investigation. Ms. Tasker advised that it is being
AUDIT COMMITTEE MINUTES
SEPTEMBER 15, 2008
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CITY OF KITCHENER
recommended that the compliance report not be completed at this time due to the aggressive
work plan for the Division, however compliance in general will be considered under the larger
umbrella of Enterprise Risk Management. Councillor B. Vrbanovic advised that he had
requested a compliance report but after discussions with Ms. Tasker and Ms. Ladd, he is of the
opinion that the approach of risk management will be of better value to the Corporation.
Mayor C. Zehr raised a concern with resource restraints in light of the proposed work plan and
was advised that the current work plan can be accomplished by one full-time staff however;
staffing will need to be re-assessed and reported on in 2009.
On motion by Councillor G. Lorentz -
it was resolved:
"That Internal Audit staff continue as planned to follow a risk-based approach to capture
significant risks across the Corporation for the purposes of managing the corporation's
risks and implementing appropriate mitigation plans; and
That no action be taken to prepare an annual report to the Audit Committee regarding
the obligations of the City under various Acts showing if the City has met its obligations."
Carried.
3. ADJOURNMENT
On motion, the meeting adjourned at 5:29 p.m.
R. Gosse
Committee Administrator